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Assume that you are a consultant to Broske Inc., and you have been provided with the following data: D1 = $0.67; P0 = $40.00; and

Assume that you are a consultant to Broske Inc., and you have been provided with the following data: D1 = $0.67; P0 = $40.00; and g = 8.00% (constant). What is the cost of equity from retained earnings based on the DCF approach?

a. 11.71%

b. 7.64%

c. 9.68%

d. 10.93%

e. 8.13%

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